--- title: "The Effects of the Decentralization of Collective Bargaining on Wages and Worker’s Well-being" authors: - name: "Maczulskij, Terhi" url: "https://www.etla.fi/henkilot/maczulskij-terhi/" sameAs: - "https://orcid.org/0000-0002-4325-2254" - "https://scholar.google.com/citations?user=RqySUVUAAAAJ" - "https://twitter.com/maczulskij" - "https://sites.google.com/view/terhi-maczulskij" - name: "Kauhanen, Antti" url: "https://www.etla.fi/henkilot/kauhanen-antti/" sameAs: - "https://orcid.org/0000-0001-9506-1241" - "https://scholar.google.com/citations?user=AjYlgDoAAAAJ" - "https://twitter.com/Antti_Kauhanen" - "https://sites.google.com/view/antti-kauhanen/home" - name: "Riukula, Krista" url: "https://www.etla.fi/henkilot/riukula-krista/" sameAs: - "https://orcid.org/0000-0002-0117-0816" - "https://scholar.google.com/citations?user=WGOHyykAAAAJ" - "https://twitter.com/kristariukula" - "https://www.kristariukula.com/" date_published: "2021-02-08" series: "ETLA B" series_number: "279" issn: - "0356-7443" isbn: - "978-951-628-737-2" language: "fi" publisher: "ETLA Economic Research" pdf_url: "https://www.etla.fi/wp-content/uploads/ETLA-B279.pdf" identifier: "https://www.etla.fi/julkaisut/id/ETLA-B-279" --- # The Effects of the Decentralization of Collective Bargaining on Wages and Worker’s Well-being **Published:** 2021-02-08 **Categories:** Books, Publications **URL:** https://www.etla.fi/en/publications/isommat-palkankorotukset-ja-parempi-tyohyvinvointi-paikallisesti-sopien/ #### Summary This report analyses the effects of the decentralization of collective bargaining on the incidence of wage increases, wage dispersion and worker’s well-being in Finland. This project is funded by the Finnish Work Environment Fund. We use linked employer-employee panel data for the 2005–2013 period, matched with information on collective agreements, sickness absence and mental health disorders. Our regression results from models with high-dimensional individual and firm fixed effects show that decentralized bargaining leads to 1–2 percent higher wage increases. Decentralized bargaining decreases wage dispersion among blue-collar employees and slightly increases it among white-collar employees. We argue that these differences reflect the different preferences of the employee groups. We also show that decentralization is positively related to objectively measured indicators for worker’s well-being, such as decreased job quits and long-term sickness absence. However, there is some evidence to show that decentralized bargaining could lead to increased mental health problems among blue-collar workers. Whether the mechanism between bargaining systems and worker’s well-being is explained by actual or relative wages needs to be explored further. --- ## Additional Information **Isbn:** 978-951-628-737-2 (nid.), 978-951-628-738-9 (pdf) **Issn:** 0356-7443 **Sivuja:** 47 20 **Kieli:** fi **Sarja:** ETLA B **Sarja Nro:** 279 **Key Words:** Decentralization, Collective agreements, Wage bargaining, Wage increase, Wage dispersion, Worker’s well-being **Paivays:** 08.02.2021 **Kansikuva:** https://www.etla.fi/wp-content/uploads/etla-b279-kansi.jpg **Lataa Pdf:** https://www.etla.fi/wp-content/uploads/ETLA-B279.pdf **Kirjoittajat:** Maczulskij, Terhi - Kauhanen, Antti - Riukula, Krista **Saatavuus:** 2 ## Bibliographic metadata (JSON-LD) ```json { "@context": "https://schema.org", "@type": "ScholarlyArticle", "@id": "https://www.etla.fi/julkaisut/id/ETLA-B-279", "headline": "The Effects of the Decentralization of Collective Bargaining on Wages and Worker’s Well-being", "inLanguage": "fi", "publisher": { "@type": "Organization", "name": "ETLA Economic Research", "url": "https://www.etla.fi", "logo": { "@type": "ImageObject", "url": "https://www.etla.fi/wp-content/uploads/logo-etla_logo.svg" } }, "datePublished": "2021-02-08T00:00:00+00:00", "author": [ { "@type": "Person", "name": "Maczulskij, Terhi", "url": "https://www.etla.fi/henkilot/maczulskij-terhi/", "sameAs": [ "https://orcid.org/0000-0002-4325-2254", "https://scholar.google.com/citations?user=RqySUVUAAAAJ", "https://twitter.com/maczulskij", "https://sites.google.com/view/terhi-maczulskij" ] }, { "@type": "Person", "name": "Kauhanen, Antti", "url": "https://www.etla.fi/henkilot/kauhanen-antti/", "sameAs": [ "https://orcid.org/0000-0001-9506-1241", "https://scholar.google.com/citations?user=AjYlgDoAAAAJ", "https://twitter.com/Antti_Kauhanen", "https://sites.google.com/view/antti-kauhanen/home" ] }, { "@type": "Person", "name": "Riukula, Krista", "url": "https://www.etla.fi/henkilot/riukula-krista/", "sameAs": [ "https://orcid.org/0000-0002-0117-0816", "https://scholar.google.com/citations?user=WGOHyykAAAAJ", "https://twitter.com/kristariukula", "https://www.kristariukula.com/" ] } ], "abstract": "", "keywords": [ { "@type": "DefinedTerm", "name": "Decentralization", "@language": "en" }, { "@type": "DefinedTerm", "name": "Collective agreements", "@language": "en" }, { "@type": "DefinedTerm", "name": "Wage bargaining", "@language": "en" }, { "@type": "DefinedTerm", "name": "Wage increase", "@language": "en" }, { "@type": "DefinedTerm", "name": "Wage dispersion", "@language": "en" }, { "@type": "DefinedTerm", "name": "Worker’s well-being", "@language": "en" } ], "isPartOf": { "@type": "PublicationIssue", "issueNumber": "279", "isPartOf": { "@type": "Periodical", "name": "ETLA B", "issn": "0356-7443" } }, "mainEntityOfPage": "https://www.etla.fi/en/publications/isommat-palkankorotukset-ja-parempi-tyohyvinvointi-paikallisesti-sopien/", "url": "https://www.etla.fi/en/publications/isommat-palkankorotukset-ja-parempi-tyohyvinvointi-paikallisesti-sopien/", "associatedMedia": { "@type": "MediaObject", "@id": "https://www.etla.fi/wp-content/uploads/ETLA-B279.pdf", "encodingFormat": "application/pdf", "contentUrl": "https://www.etla.fi/wp-content/uploads/ETLA-B279.pdf" }, "sameAs": [ "https://www.etla.fi/julkaisut/isommat-palkankorotukset-ja-parempi-tyohyvinvointi-paikallisesti-sopien/", "https://www.etla.fi/en/publications/isommat-palkankorotukset-ja-parempi-tyohyvinvointi-paikallisesti-sopien/", "https://www.etla.fi/sv/publikationer/isommat-palkankorotukset-ja-parempi-tyohyvinvointi-paikallisesti-sopien/" ] } ```